Human Resource Management

Tehzeeb Sakina Amir

IU Spring 2011
HRMm - MBA

Start up session
Welcome & Class introduction
Course facilitator introduction
Course Objectives
Importance of HRM
Outlines HRM ways for the benefit of the organization and
employees
Issues in HRM in changing work environment
Suggests ways of managing human capital

Start up session
Teaching methodology
Teaching will mainly be done through coaching
the students with interactive sessions.
The key to success is to keep the concept
clear, simple and always look for its practical
application in a working environment

Start up session
Class norms - To get the maximum benefit out of
the course students are strongly recommended to:
Arrive and leave in time! No early leaves / late comings
Come Prepared! This is not a lecture-only course!
Planned & surprise class quizzes/activities, be regular!
Assignments and other related work has to be submitted on
time. Late submission will not be acceptable and will be
marked zero!
Do your own work! Copied work will be marked zero!
Cell phones switch off or put on silent please!
No personal, political and religious examples & comments.

Course outline and grading

Course content (modules) soft copy email or
copy from temp folder.
Testing & Grading
Grading will focus on your overall performance rather
than one or two aspects. A mid-term examination & a
final examination will be taken.
Class Participation
Class quizzes, assignments
25%
Mid-term
25%
Term project
10%
Final Exam
40%
TOTAL
100%

Books & Journals

Resources
Gary Dessler and Biju Varkkey Human
Resource Management eleventh edition
Snell S. and Bohlander G. The Handbook of
Human Resource Management 2007
Society for Human Resource Management via
www.shrm.org
HRM research papers and scholarly journals

Selection of CR & Groups formation

CR nomination
Groups formation
Class information (email addresses)
Term Project

Human Resource Management

Your understanding

Human
Resource
Management

To sum up.
HRM is one function of management process
where policies and practices focus on
carrying out people including recruiting,
screening, training, rewarding and appraising.

HRM functions
To perform the people
Conducting job analysis
Planning labor needs & recruiting job candidates
Selecting
Orienting and training
Managing wages & salaries
Providing incentives and benefits
Performance appraisals
Communicating interviewing, counseling, disciplining
Training and developing
Building employee commitment

HRM functions
A manager must know:
Employment laws
Equal opportunity and affirmative action
Employee health & safety
Handling grievances & labor relations

HRM specialties
Recruiters
HR development specialists
Job analysts
Compensation managers
Training specialists
Employment/industrial relations specialists
Employee welfare officers

Small mistakes = huge loses

What can go wrong!
Hire the wrong person
High turnover
People not performing
Waste time with useless interviews
Have your company taken to court because of
discriminatory actions
Have your company cited under occupational safety
laws for unsafe practices
Unfair and inequitable salaries
Lack of training
Commit unfair labor practices

Every manager is an HR
manager

Authority line and staff

Authority the right to make decisions,
direct others work and give orders.
Line authority direct activities in own
department and in service areas
Staff authority to advise other managers

HR managers duties
A line function
A coordinative function to ensure line
managers are implementing organizations
policies, rules.
Staff functions- assist and advise line
managers
The size of HR department reflects the size of the
company

HR Managers Proficiencies
HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies

Managing within the Law

Managing Ethics

The changing environment

and HRM

Major changes in work

environment
Globalization trends & implications
Technological trends
Nature of work
High-tech jobs
Service jobs
Knowledge work & human capital

Workforce demographic trends

Availability of Employable Talent

Labor Legislation and Laws

Labor Laws Pakistan

Labor legislation is the responsibility of
both Federal and Provincial governments
Total labor force in Pakistan
37.15 million people
47% agriculture sector
10.5 % in manufacturing
42.5% in various other professions
(source: labourunity.org)

Labor Laws Pakistan

Article 11 of the constitution prohibits child labor, forced labor and
slavery
Article 17 right to exercise freedom of association and unions
Article 18 right to enter any lawful profession, occupation, business
Article 25 prohibits discrimination on basis of gender
Article 37 (e) provision for just and humane work conditions
Laws of hiring & firing
Laws of working hours (7hrs/day. 42 hrs/week factories act)
Leaves paid
Child labor (below 14 years)
Strikes and Lock-outs

Equal Opportunity Employment

Discrimination on the basis of race, colour, religion, sex or national
origin
Article 38 aims at achieving equality
Defenses against discrimination allegations
Disparate treatment intentional discrimination
Disparate impact neutral employment policy creating an adverse
impact. (college degree requirement). Not intentional.
Adverse Impact: the overall impact of employer practices that result in
higher percentage of a particular groups members being rejected or not
promoted. Adverse impact can be shown through:
Disparate rejection rates
Restricted policy
Population comparison
Mc-Donnell-Douglas Test

Bona Fide Occupational Qualification

BFOQ - requirement that an employee be
of a certain religion, sex, age or national
origin which is necessary for
organizations functioning
Business Necessity proof that there is
an overriding business purpose for the
discriminatory practice and should
therefore be acceptable

Handling discrimination charges

Good intentions are no excuse!!
Can not hide behind collective bargaining
Agreement may be the best option

Diversity

Some discriminatory practices

Recruitment
Word of mouth
Misleading information
Help wanted ads

Selection standards
Educational requirements
Tests
Preference to blood relations
Height, weight and physical characteristics
Criminal records
Application forms

Some discriminatory practices

Existing employees
Promotions
Transfers
Layoffs

Personal appearance
Dress
Hair/beard
Uniforms

THE STRATEGIC HRM

more a partner than a cost centre..

The new HRM face

Traditional
Hiring/firing
Payroll
Benefits plan

Testing & interviewing technology

Union legislation
Equal employment legislation

Strategic HRM

Creating High
Performance Work
systems

Strategic - concepts
Strategy is The companys plan for how it will
balance its internal strengths and weaknesses
with its external opportunities and threats and to
maintain a competitive advantage.
Strategic management is The process of
identifying and executing the organizations
mission by matching its capabilities with the
demands of the environment.
Strategic Plan + Implementation of the Plan

Strategic management - Steps

Step 1
Step 2

Step 3
Step 4
Step 5
Step 6
Step 7

Define current business and developing a

mission
SWOT evaluating internal & external
strengths, weaknesses, opportunities and
threats
formulating a new business statement
translating mission into goals
formulate strategies or courses of action
Implement the strategies
Evaluate performance

Strategies - Types
Corporate strategy one
organization into multi
business but one
corporate strategy
Competitive strategy
business level strategy
The Competitive
Advantage the edge,
the differences with
competitors that
organization use to
increase market share.
Functional strategy
basic courses of action in
departments.

Strategic Fit
Dilemma of manager misfit
Two possibilities to overcome:
Fit the manager should align functional
strategies with and support its corporate and
competitive strategies.
Can result in limited growth

Leveraging supplementing what you have and

doing more with what you have
Manager must underplay firms weaknesses &
capitalize on unique core strength of the company

HRM Role in strategic front

HRM Strategic Plan is formulating and
executing HR policies and practices that
produce the employee competencies and
behaviors the company needs to achieve its
strategic aims.
HRM helps to create the competitive
advantage for the organization
The Competitive advantage can take many forms: quality,
research, software systems, diversity of the workforce,
trained employees, HR policies & practices etc.

Linking organization & HR strategies

Companys competitive
environment

Strategic plan
Companys strategic
situation

Companys internal strengths

And weaknesses

Organizational
performance

(expand/cut cost/diversify)

HR strategies
Courses of action

Challenges to HRM
Need to support corporate productivity
and performance improvement efforts
Employees play an expanded role in
employers performance improvement
efforts
HR units must be more involved in
designing not just executing the
companys strategic plan

HRM Strategic Roles

The Strategic Roles:
The Execution Role the doing part
The Formulation Role expanded role where
included in working of formulating corporate
and competitive strategies

The Strategic HRM System

The HR
Function
HR
professionals
With strategic
management
competencies

The HR
System
High
Performance
Work system

Employee
Behaviors
Employees
Competencies,
Values,
Motivation, &
Behaviors
required

High Performance Work Systems

A system which tends to create human resource
with unique support to organizational needs
Aims to maximize competencies, commitment
and abilities of the employees which produce
superior performance
Vary from organization to organization

High Performance Work Systems

Includes practices:
Employment security
Selective hiring
Extensive training
Self managed teams and decentralized decision making
Reduce status quo
Information sharing
Contingent rewards (pay-for performance)
Transformational leadership
Measurement of management practices
Emphasis on high quality work

Assessing HRM performance

Absence rate
Cost per hire
HR expense factor
Time to fill
Turnover rate

Southwest Airlines
"Our people are our single greatest strength and most enduring
long term competitive advantage."
Gary Kelly, CEO Southwest Airlines

The Mission of Southwest Airlines

The mission of Southwest Airlines is dedication to the highest quality
of Customer Service delivered with a sense of warmth, friendliness,
individual pride, and Company Spirit.
To Our Employees
We are committed to provide our Employees a stable work
environment with equal opportunity for learning and personal
growth. Creativity and innovation are encouraged for improving the
effectiveness of Southwest Airlines. Above all, Employees will be
provided the same concern, respect, and caring attitude within the
organization that they are expected to share externally with every
Southwest Customer.